Vermont Salaried Employees Laws

August 6th 2024

Salaried employees are those who receive a predetermined fixed amount of compensation regularly, such as weekly or less frequently.

Vermont has established laws and regulations that define the rights and obligations of both salaried employees and their employers.

This article provides an overview of these regulations, encompassing areas such as payment protocols, break and leave benefits, and the differentiation between exempt and non-exempt employees.

This article covers:

Payment of Wages for Salaried Employees in Vermont

In Vermont, all employers, irrespective of their status as private or public entities, must adhere to a designated payment structure. They are obligated to remit all owed wages to their employees on a weekly basis. Nevertheless, there exists a degree of flexibility if all employees collectively consent to a bi-weekly payment arrangement, which employers can establish after notifying their workforce. The designated payday should occur within 6 days following the conclusion of the pay period.

Additionally, employers are compelled to furnish a comprehensive statement on each payday, encompassing details about total worked hours, hourly compensation, total earnings, and itemized deductions. Employers frequently employ systems for monitoring payroll hours and establish procedures for managing pay periods and approvals.

Salaried Employees Eligibility for Overtime for Vermont

Salaried employees in Vermont are still eligible for overtime if they meet certain criteria. 

Vermont’s overtime compensation law applies to employers with a staff of two or more. According to this law, if an eligible employee works more than 40 hours in a workweek, their employer must provide them with compensation at a rate of at least 1.5 times their regular wage. However, the law does not mandate overtime pay for working over eight hours in a day or for work done on weekends or holidays.

Pay for Working Overtime for Vermont Salaried Employees

To calculate the overtime rate for salaried employees, the employers must first identify their regular rate. The regular pay rate for a salaried employee is calculated by dividing the salary by the intended work hours.

When regular hours fall below 40, the regular rate is applied up to 40 hours, followed by 1.5 times the rate for hours beyond 40.

If regular hours already equal 40, overtime is paid at 1.5 times the rate for hours exceeding 40.

It’s important to highlight that while salaried employees typically don’t have to keep detailed records of their work hours, situations like calculating overtime can benefit from keeping track of overtime hours. Timesheet templates can be a useful tool to ensure accurate tracking of overtime hours, and there are also software solutions specifically designed for overtime compliance to ensure adherence to labor laws.

Overtime Exemptions for Vermont Salaried Employees

For an employer to fall under the jurisdiction of overtime regulations, they must have a workforce of at least two employees, except when those specific employees are granted exemptions as outlined by the Vermont Statute. Instances of employees who might be exempted from overtime regulations encompass:

  • Employees in retail or service establishments
  • Workers in amusement or recreational establishments
  • Personnel in hotel, motel, or restaurant establishments
  • Staff in hospitals and public health centers
  • Employees in nursing, maternity, and therapeutic homes
  • Individuals engaged in transporting persons or property to whom FLSA overtime mandates do not apply
  • Employees of political subdivisions of the state

Learn more about Vermont Overtime Laws.

Violation of Salaried Employees Wages Payment in Vermont

When it comes to the failure to pay wages and benefits in Vermont, any employer found in violation of wage regulations will face a fine of up to $5,000. If the employer is a corporation, the president or other officers responsible for the payment operations will also be held liable and subject to penalties if they knowingly participate in violations without good cause.

Additionally, beyond any other legal penalties, employers obligated by employment agreements to provide benefits must compensate employees for actual damages resulting from failure to pay these benefits. If the failure is willful and continues for 30 days after the due date, the employer can be imposed a civil penalty of up to $5,000 by the Commissioner. Enforcement and collection of these fines can be pursued in the Civil Division of the Superior Court at the discretion of the Commissioner.

Male and Female Salaried Employees in Vermont

Both Vermont state law and federal law explicitly forbid any form of discrimination or harassment based on an individual’s sex. The Vermont Fair Employment Practices Act goes beyond simply prohibiting sex-based discrimination, as it also specifically bars discrimination based on gender identity. Similarly, Title VII of the US Civil Rights Act of 1964 has been interpreted to encompass gender identity discrimination under the umbrella of sex-based discrimination. Sex discrimination involves an employer treating someone unfavorably due to their gender, which encompasses actions rooted in conforming to or defying sex-related stereotypes. This also extends to instances of sexual harassment.

Additionally, both Vermont state law and federal law explicitly prohibit paying individuals differently based on their gender. Vermont has also enacted several additional laws aimed at reducing pay disparities between men and women. One such law allows employees to openly discuss their compensation and inquire about their colleagues’ pay, promoting wage transparency and preventing potential unfair pay practices from remaining hidden. Additionally, employees have the right to request flexible work arrangements without fear of retaliation. This provision is particularly important for women, who often bear a greater share of family care responsibilities. The availability of flexibility can be a crucial factor in enabling women to work full-time instead of part-time and reducing the wage disparity that mothers commonly face. Furthermore, Vermont employers are prohibited from asking potential employees for their salary history. This measure aims to break the cycle of pay inequities by avoiding the use of past salary to determine future compensation, which can inadvertently perpetuate wage inequalities.

Leave Entitlements for Salaried Employees in Vermont

Salaried workers frequently need to take into account the different types of leave available to them and also monitor time off from work. The Family and Medical Leave Act (FMLA) grants 12 weeks of unpaid leave for eligible employees in Vermont, supplemented by Vermont’s Small Necessities Law offering up to 24 hours of family-related leave. Sick leave is accrued at a rate of 1 hour per 52 hours worked, with a maximum of 40 hours annually, but various exceptions apply to eligibility.

Additionally, jury duty mandates employers provide time off for court proceedings, although wages during this period aren’t mandatory. Crime victim and witness protection laws guard employees summoned to testify, ensuring their job rights and benefits are preserved. Finally, town meeting leave, military service leave, and flexible working arrangements for FMLA reasons enhance employee support and rights.

Break Entitlements for Salaried Employees in Vermont

In Vermont, there are no distinct state statutes governing break regulations, thus federal guidelines are applicable. Nevertheless, Vermont state law implies that employers should provide reasonable opportunities for their employees to take meals, rest, and use restroom facilities.

Under the Fair Labor Standards Act (FLSA), which is federal law, employers are not mandated to provide breaks. However, if employers choose to offer breaks based on their own policies, any breaks lasting less than 30 minutes are typically considered paid breaks.

Deductions from Exempt Employees’ Salary in Vermont

Vermont’s Minimum Wage Rules provide clear guidelines on permissible and prohibited wage deductions.

Employers are allowed to make various deductions from employees’ wages under specific circumstances. First, they can deduct for goods or services provided, as long as there is written authorization or documented intent to repay, the deduction doesn’t push the employee’s wage below the minimum hourly wage, and deductions adhere to legal regulations and employee agreements. Second, employers can make deductions authorized by state or federal laws, encompassing taxes, child support, and contributions for health insurance or retirement plans, provided the employee grants written consent. Lastly, employers are entitled to deduct allowances for employer-provided meals and lodging as outlined in the Vermont Minimum Wage Rules.

On the other hand, prohibited wage deductions are clearly outlined as well. Employers cannot deduct wages for claimed damages, cash register shortages, or medical exams required as employment conditions. They are also restricted from deducting wages for mandatory apparel, including uniforms, without written consent that complies with minimum wage requirements and collective bargaining agreements. Additionally, employers cannot charge employees for personal protective equipment mandated by safety regulations, unless authorized by specific provisions. Lastly, deducting wages to offset a state-mandated Health Care Contribution defined under 21 V.S.A. §2003 (Catamount Health) is not permissible.

Termination of Employment for Salaried Employees in Vermont

In Vermont, as in various other states across the US, the employment-at-will principle is observed. This grants employers the authority to terminate employment contracts without cause, yet discrimination-based termination is prohibited. As long as the reasons for termination are legitimate and within the confines of employees’ rights, employers are authorized to terminate contracts.

In scenarios of substantial staff reductions, involving the dismissal of at least 50 employees within a 90-day period, employers must furnish the Commissioner of Labor with a notice spanning six weeks for the layoffs to be legally valid.

Regarding the final paycheck procedure in Vermont, it aligns with practices found in other US states. All employers in Vermont are obliged to remit owed wages to departing employees within 72 hours of the stipulated payday. The remuneration can be electronically deposited into the employee’s bank account or provided directly, in accordance with the contract’s terms. Read more about employment termination in our Vermont firing guide.

Learn more about Vermont Labor Laws through our detailed guide.

Important Cautionary Note

This content is provided for informational purposes only. While we make every effort to ensure the accuracy of the information presented, we cannot guarantee that it is free of errors or omissions. Users are advised to independently verify any critical information and should not solely rely on the content provided.